Protecting Employees and Retirees in Business Bankruptcies Act of 2025

This bill changes the rules for when a company goes through bankruptcy reorganization. It raises the amount of money employees can claim they are owed for wages and benefits from $10,000 to $20,000 and removes the rule that those earnings had to be from a specific time period before the bankruptcy was filed. It also limits how much top executives and company insiders can be paid during bankruptcy, saying they can generally only receive the same kinds of payments that all full-time employees get. The bill gives higher priority to certain employee-related claims like severance pay, pension contributions, and damages from labor law violations, and it adds protections for retiree benefits and union contracts during the bankruptcy process.

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